Hi every one!
I can borrow up to $180k for Property investment (100% LVR). I have been looking at 3 options:
1. A 4 bed room house in Churchill (Gippsland, with Monash uni campus) costing about $110K with possible rental return $125/wk.
2. Few 3 bed room houses in Melton costing between $140k – $160k with possible rental return $145- $160/wk.
3. Few 3 bed room houses in Werrebee costing $160k – $180K with possible rental return of $150 – $160/wk.Please advice me which is the best possible buy. Your advice will be highly appreciated.
Thanks
SharifSharif
Hi Sharif,
It depends on what your investment goals are. Are you looking for capital growth or cash flow? Are you looking at Melbourne and surrounds only?
If I were you, I would be looking at opportunities in other states as well as you can find better cash flow.
That said, of the 3 properties you listed, I will probably go with the property in Melton. I think Melton is undervalued compared to some of the surrounding suburbs. You also need to take into account the age of the property, land size, etc.
Hope this helps
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Sanjiv:
Thanks for your advice. I have looked into Adeladie as well, in the elizabeth, davoren park area. I can only buy one part of a dupex with $110 k. If I have to buy a house I need to spend at least $120 – 130K. I thought it is better to buy a house in the outer suburb of Melbourne than in the outer suburb of Adelaide. What do you think? I alwaays considered cashflow, but I think that is not an option in this market as I am taking 100% LVR. So I am hoping for at least a reasonable growth and may be some help with minor renovation. I am still actively searching for the positive cash flow as well.
By the way, thanks for the quote from Nelson Mandela. I am great admirer of him.
Sharif
Sharif
Personally, I don’t like the figures on any of those – not enough rent return for me (no.1 is just o.k), but if you are buying for cap growth and don’t mind the neg cashflow then so be it.
The other factors worth looking at for those 3 properties are:
1. which area has the best potential for cap growth.
2. which property has the best proximity to amenities, transport, schools, parks, shops etc.
3. which property has been built after 1987 so you can maximise your depreciation for tax purposes.
4. which property has the best potential for add-on value.
5. which one has the least amount of outgoings.Pick the one that has the best combination of all those factors.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Thanks for your advice Marc. Every little bit helps.
SharifSharif
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